Minnesota – Local Food and Beverage Tax Announced

SALT Report 2463 – The Minnesota Department of Revenue issued a bulletin regarding the 1.5% food and beverage tax that will go into effect in the city of Marshall on July 1, 2013. The Marshall Food and Beverage tax applies to sales of food and beverages by a restaurant or place of refreshment that is located within the city of Marshall. All food and beverage sold in these establishments will be subject to the new tax regardless of whether they are sold for consumption on or off premises.

Additionally, any food sold in Marshall that is currently subject to the state sales tax will also be subject to the new 1.5% tax. This also applies to sales of liquor and fermented malt beverages. However, liquor sold for off-premises consumption will not be subject to the 1.5% tax.

All restaurants and places of refreshment, including retail liquor establishments, will be required to register with the Department to report and remit the tax. Reporting the Marshall Food and Beverage tax will be done at the same time and on the same form that is used to report your Minnesota sales and use tax; however the figures will be reported on separate lines.

For Further Information

Minnesota Department of Revenue – Local Tax Information